The Marcy nano site: What now?

For the past 15 years, local economic development officials have been grooming a site at SUNYIT to become home to a computer chip fabrication plant.

About $16 million in state and local funds already have been spent, and about $39 million more in improvements are slated. But a decision last week by the U.S. Army Corps of Engineers has thrown the value of the investment into question.

Elizabeth Cooper

For the past 15 years, local economic development officials have been grooming a site at SUNYIT to become home to a computer chip fabrication plant.

About $16 million in state and local funds already have been spent, and about $39 million more in improvements are slated.

But a decision last week by the U.S. Army Corps of Engineers has thrown the value of the investment into question.

On Monday, the Corps invalidated a permit for wetland mitigation at the site after Mohawk Valley EDGE economic development agency appealed over a stipulation of the permit.

Now, EDGE officials are trying to determine how the site can remain competitive in the fast-paced international nanotechnology market.

“We have been talking to a lot of people and are looking at a number of paths,” EDGE President Steve DiMeo said.

Those possibilities include taking the Army Corps to court and also applying for a new permit — actions that could be taken at the same time, DiMeo said.

He said his organization, which is spearheading the marketing effort, still is committed to attracting one of the multibillion dollar plants to Marcy.

The Army Corps defended its decision and said it did not block EDGE from finding a tenant for the site.

“This is part of our charge under the Clean Water Act to protect the wetlands for the citizens of this nation and in this region,” said Jeff Hawk, a spokesman for the Army Corps’ Great Lakes and Ohio River Division. “I think everyone recognizes that the jobs are important, and it’s important to protect our aquatic resources.”

What happened?

There are about eight acres of wetlands scattered across the 300-acre site, and by law if they are altered or obliterated, something must be done to mitigate the impact.

EDGE had sought a permit from the Army Corps to fill in the wetlands and construct new ones elsewhere. That would enable EDGE to move forward with other site improvements and let a nano-chip company immediately begin construction on the site.

The Army Corps issued a permit but said the work couldn’t be carried out until an occupant for the property was in hand. That stipulation meant that no other construction activity could be done on the site until a company was found.

EDGE appealed, pointing to the fast-paced market for sites and saying the delay would make it very difficult to secure a tenant.

In Monday’s decision, the Corps revoked the permit and told EDGE it could reapply “in the event that circumstances change.”

“This isn’t the end of their ability to pursue a tenant,” Hawk said. “If they find a tenant who can inform us of specific plans, they can reapply for a permit.”

He said the decision would be quick if the plans resembled those EDGE has already submitted, but could take several months if they were different.

The industry

The global semiconductor industry raked in about $300 billion worldwide in 2011, so it’s no surprise everyone wants a piece of it.

That’s why communities around the world are trying to make themselves as appealing as possible to these companies.

Hundreds of high-paying jobs, along with an infusion of tax dollars associated with a plant, can boost local economies and brighten the futures of those who live there.

Consumers are driving the pace of the market as they snap up the latest smartphone or tablet. Nanotechnology also is part of numerous breakthroughs in fields as diverse as medicine and the military.

In today’s competitive industry climate, getting products into production as quickly as possible is the key to success. That means building a fabrication plant needs to happen fast.

If a company has a new product in development, it wants large numbers of them to be made and sent out to consumers as quickly as possible before another company comes out with something better, said Ian Steff, vice president for global policy and technology partnerships at the Semiconductor Industry Association.

“If their fabs are running at capacity, the consumer will be demanding more,” Steff said, using the shortened industry term for chip fabrication plants. “They would have to build a new fab.”

With SUNYIT partnering with the successful Albany College of Nanoscale Science and Technology and poised to get millions in state investment for a Computer Chip Commercialization Center in Marcy, there will be a ready-made work force here, he said.

“It’s no shock to me that a manager that’s looking to place a semiconductor plant would place it right next to a source of talent,” he said.

Local efforts

In the late 1990s, the state offered a competition in which locations could compete for funding to ready sites for nanotechnology manufacturers, DiMeo said.

The site in Marcy, which is adjacent to SUNYIT, was one of 13 across the state selected in 1998.

That’s when the years-long marketing and development process began.

As early as 2001, EDGE was in discussions with the Army Corps over wetlands issues, O-D archives show.

But even as those discussions stalled, other work to boost the site’s appeal was being done. Roadways around it were improved, as were water and sewer lines.

At the same time, EDGE officials also began making their pitch to the semiconductor industry. They have been doing everything from making direct sales calls to participating in industry conferences and events, DiMeo said.

Steff said the Army Corps’ decision could be a setback for the Marcy site.

“You’re looking around the world to locate one of these investments, and if another region is capable of providing a complete package, uncertainty is not a helpful thing,” he said.

Though the United States still dominates the industry and netted 51 percent of the $300 billion in 2011, there are deterrents to putting fabs in this country.

“There is a billion dollar difference between building a fab in the U.S. versus Asia over 10 years,” Steff said. “Ninety percent of that is attributable to tax policy and grants and loan structures these other countries are willing to put on their table.”

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